Authority: High Court of Punjab and Haryana at Chandigarh

Order Date: 06 September 2024

Case Overview

  • Parties: Sunrise Wine (Petitioner) vs Union of India and others (Respondents).
  • Nature of Proceeding: Writ petition challenging revenue notices issued under the Income Tax Act, 1961.
  • Relevant Case Numbers: CWP‑22566‑2024 (O&M). The Court also referred to earlier judgments: No.21509 of 2023 (Jasjit Singh vs Union of India) decided 29‑07‑2024, No.15745 of 2024 (title not specified), and Jatinder Singh Bhangu vs Union of India decided 19‑07‑2024.
  • Legal Provisions Discussed: Sections 11, 144B(7 & 8) and Section 148 of the Income Tax Act, 1961. The Court emphasized that circulars or instructions issued by the Board cannot override statutory provisions and must only supplement them.
  • Observations: Notices issued by the Joint Assessment Officer (JAO) under Section 148 without conducting the faceless assessment mandated by Section 144B are contrary to the Act. Such notices cause hardship to assessees and create confusion.
  • Specific Notices Set Aside: Notices dated 28‑02‑2023, 16‑03‑2023, 20‑03‑2023, and 30‑03‑2023, together with the order dated 30‑03‑2023, were declared void for lack of jurisdiction.
  • Reference to Prior Judgments: The Court reiterated the view of the Coordinate Bench that statutory enactments with financial implications must be strictly followed and that circulars cannot render statutory provisions otiose.

Final Outcome

  • All writ petitions filed by Sunrise Wine were allowed.
  • The four revenue notices and the associated order were set aside.
  • All pending applications in the matter were disposed of accordingly.
  • The interim order previously passed merges with this final order.

Topics: Tax Assessment, Judicial Review